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Competitive Strengths

Business Model – B3’s main strengths are its vertically integrated business model and diversified offering of products and services for different markets. Verticalization enables the Company to operate in all links of the service chain traversed by a transaction executed on the exchange (trading, clearing, settlement and CSD). Similarly, B3 offers complete solutions for the registration of over-the-counter transactions involving fixed-income instruments and derivatives, as well as the infrastructure for activities relating to vehicle and real estate financing. In many of the markets it manages, services are provided at the final beneficial owner level, which increases the complexity and systemic importance of the activity. With regard to diversification, B3 offers services in the stock market and in the markets for equity, financial and commodity derivatives, fixed income, foreign exchange, structured transactions, and credit. The combination of verticalization and diversification enables B3 to offer complete solutions for activities of key importance to customers, especially financial conglomerates, brokerage houses, investors (individuals, local institutions and non-residents), listed companies, and traffic departments. High-quality service offerings, multiple points of customer contact and operational and risk management excellence are the pillars that assure the sustainability of B3’s business. Another feature of this business model is the high level of operational leverage, given the predominance of fixed costs and the need to have the infrastructure that can handle rapid volume growth.

Experienced management – The Company’s team is experienced and respects the highest standards of corporate governance. There is a continuous process of knowledge refinement and talent development that adds quality and expertise to management and guarantees a healthy succession process.

Technology – The resilience and availability of B3’s systems and platforms are fundamental to the functioning of the financial and capital markets and the performance of customers’ mission-critical activities. For this reason the Company invests constantly in the maintenance of this infrastructure, the expansion of its operating capacity and the enhancement of the services provided. This continuous development is assured by both its in-house expertise and capacity, and its partnerships with leading technology companies and institutions to enhance the efficiency of its systems.

Innovation – B3 focuses on continuously improving its services, developing the Brazilian market and prospecting for new business opportunities. It permanently tracks trends in the Brazilian and international markets, the needs of its customers, and the emergence and development of new technologies and processes. In this manner it seeks to maintain its portfolio of products and services at the forefront of the industry in a virtuous circle of improvement and development.

Risk management – B3 is a global reference in risk management and collateral management. Its clearinghouses are considered systemically important by the Central Bank and act as central counterparty (CCP) for all transactions involving listed assets and contracts as well as some over-the-counter products. As a CCP, it guarantees market stability by intermediating between participants, acting as buyer to all sellers and seller to all buyers for settlement purposes. In addition, B3’s robust corporate governance structure guarantees the effectiveness of its processes and controls.

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